Macy's is getting clobbered after slashing guidance due to a disappointing holiday season

Macy's
slashed its annual sales and profit guidance due to a
disappointing holiday season.

The retailer also cut its comparable-sales
forecast.

The holiday season started off strong during Black
Friday and Cyber Week, but weakened in the middle of December
and did not return to expected patterns until the week of
Christmas, CEO Jeff Gennette said.

Macy's
tanked 18% to $25.88 a share early
Thursday after slashing its annual sales and profit guidance due
to a disappointing holiday season.

The retailer on Thursday lowered its annual profit guidance to
between $3.95 and $4 a share, down from between $4.10 and $4.30
provided on November 14. Macy's also said it now sees its
annual net revenue to be flat, rather than the 0.3% to 0.7%
increase it previously estimated.

Meanwhile, the company said its comparable sales increased 0.7%
in November and December, but cut the guidance of its annual
comparable-sales growth to 2%, down from 2.3% to 2.5%.

"The holiday season began strong - particularly during Black
Friday and the following Cyber Week, but weakened in the
mid-December period and did not return to expected patterns
until the week of Christmas," said CEO Jeff Gennette in a press
release.